UAE business-hungry IHC plans healthcare and IT business IPO

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ABU DHABI – The International Holding Company plans to sell 20% of its technology unit in an initial public offering next year, its CEO told Reuters, adding that the United Arab Emirates’ IHC is targeting a Pure Health initial public offering. in the first quarter to raise more than $1 billion.

IHC, which rose from relative obscurity to become the largest publicly traded company in the United Arab Emirates with a value of more than $200 billion, has been on a campaign of consolidation and acquisition.

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This has led to two IHC subsidiaries rounding out the three largest companies on the Abu Dhabi Stock Exchange (ADX).

Announcement 2

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Asked about plans for International Technology Holding (ITH), Chief Executive Syed Basar Shueb said IHC is likely to list 20% in the third quarter and is in talks with local firms about possible acquisitions by the group born out of IHC’s IT sector holdings.

ITH was expected to bill 500 million dirhams ($136 million) and have $1 billion in assets for the second quarter, Shueb said.

IHC is part of a business empire overseen by its president, Sheikh Tahnoon bin Zayed al-Nahyan, who is also the UAE’s national security adviser and has sorted out foreign policy problems for his brother, President Sheikh Mohammed bin Zayed al-Nahyan.

The firm, whose market value is greater than companies like Shell, Disney and Nike, has been instrumental in increasing the size of ADX amid intensifying competition with Saudi Arabia.

Announcement 3

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IHC, its subsidiary Alpha Dhabi, ADX’s second-largest company, and other IHC-linked companies have played leading roles in a series of Abu Dhabi IPOs as key investors.

Pure Health, under Alpha Dhabi, aims to raise more than $1 billion in a Q1 IPO delayed from this year.

“It will be over a billion dollars, but the size depends on how much we put on the market. I don’t think we can go above 10%, otherwise we will take all the liquidity out of the market and this will affect the other players,” Shueb said.

Pure Health has played an important role in the detection of COVID-19 in the UAE. Its merger with state-owned Abu Dhabi Health Services (SEHA), which Shueb says has almost 24,000 employees, is taking longer than expected, delaying the IPO.

Announcement 4

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IHC, which has completed four IPOs this year and plans a similar number in 2023, has yet to name banks for the Pure Health IPO, Shueb said, adding that it is considering a possible International Energy Holding IPO in 2023.

ACQUISITIONS

IHC, with interests ranging from real estate to agriculture, said the total value of its acquisition in the third quarter exceeded 13.5 billion UAE dirhams and plans 70% more globally over the next year.

Shueb said it is in talks with international banks to secure long-term financing for planned purchases in 2023, adding that this would equate to a sizeable proportion of IHC’s cash position.

Some IHC companies could eventually issue their own bonds, Shueb said, without elaborating.

“We’ll also need to create some debt on our balance sheet so we can continue to invest.”

Announcement 5

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IHC is looking at two potential investments in India, each worth more than $2 billion, Shueb said, after investing $2 billion in Adani Group companies in April.

You can announce up to two international acquisitions and purchase a UAE-listed hotel company before the end of 2022.

“We are looking at Colombia and Asia, mainly Indonesia and India, these are the two main markets where we operate.”

This month, IHC’s bid to buy a stake in Colombian food producer Nutresa fell through because it was unable to secure the size of stake it wanted. Shueb said that IHC would continue to look for opportunities in other Latin American countries. ($1 = 3.6729 UAE dirham) (Reporting by Yousef Saba and Rachna Uppal; Editing by Alexander Smith)

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